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MutualFirst Financial Announces Second Quarter Earnings

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MutualFirst Financial Announces Second Quarter Earnings

PR Newswire

MUNCIE, Ind., July 25, 2018 /PRNewswire/ -- MutualFirst Financial, Inc. (NASDAQ:MFSF), the holding company of MutualBank (the "Bank"), announced today adjusted net income available to common shareholders, excluding $1.1 million of one-time merger related expenses, net of tax, for the second quarter ended June 30, 2018 was $5.3 million, or $0.60 diluted earnings per common share.  This compares to net income available to common shareholders for the same period in 2017 of $3.9 million, or $0.52 diluted earnings per common share. The adjusted net income for the second quarter ended June 30, 2018 represents an annualized return on average assets of 1.05% and return on average tangible common equity of 13.22% compared to 0.99% and 10.92%, respectively, for the same period of last year.

Including the one-time merger related expenses, net income available to common shareholders for the second quarter ended June 30, 2018 was $4.2 million, or $0.48 diluted earnings per common share.  Annualized return on average assets was 0.83% and return on average tangible common equity was 10.46% for the second quarter of 2018.

Adjusted net income available to common shareholders, excluding $1.6 million of one-timer merger related expenses, net of tax, for the first six months of 2018 was $9.8 million, or $1.17 diluted earnings per common share.  This compares to net income available to common shareholders for the same period in 2017 of $7.1 million, or $0.95 diluted earnings per common share. The adjusted net income for the six months ended June 30, 2018 represents an annualized return on average assets of 1.05% and return on average tangible common equity of 12.57% compared to 0.91% and 10.09%, respectively, for the same period of last year.

Including the one-time merger related expenses, net income available to common shareholders for the six months ended June 30, 2018 was $8.2 million, or $0.98 diluted earnings per common share.  Annualized return on average assets was 0.88% and return on average tangible common equity was 10.49% for the six months ended June 30, 2018.

On February 28, 2018, MutualFirst Financial, Inc. closed its acquisition of Universal Bancorp and merged Universal's wholly owned subsidiary, BloomBank, into MutualFirst Financial's wholly owned subsidiary, MutualBank.  At closing, this acquisition increased total assets by approximately $398 million, total investments by $88 million, total loans by $253 million and total deposits by $315 million.  As a result of the acquisition, initial goodwill generated was $21 million and the core deposit intangible was $4.5 million.  On April 23, 2018, the system conversion was completed to merge all of the BloomBank customers into MutualBank.

"The conversion of BloomBank customers into MutualBank was a success.  This will allow us to focus on realizing the opportunities expected," said David W. Heeter, President and CEO. 

Balance Sheet

Assets increased $422 million as of June 30, 2018 compared to December 31, 2017 primarily due to the acquisition of Universal.  The gross loan portfolio increased by $285 million primarily due to acquiring the $253 million net loan portfolio of Universal in the first quarter of 2018.   Non-residential consumer loans increased by $36 million, or 37% on an annualized basis in the first half of 2018.  The mix of loans in our portfolio as of June 30, 2018 compared to December 31, 2017 shifted toward our desired strategic objective through the acquisition.  Commercial loans increased to 46.7% compared to 40.3%, residential loans decreased to 37.6% compared to 43.3% and non-residential consumer loans decreased to 15.7% compared to 16.4%.

Deposits increased by $318 million as of June 30, 2018 compared to December 31, 2017 primarily due to an increase of $315 million in the acquisition.  As of June 30, 2018, core deposits totaled $1.1 billion, or 70.9% of total deposits and certificates of deposit totaled $443 million, or 29.1% of total deposits.   This is compared to a mix of core deposits of 69.1% and certificates of deposit of 30.9 % as of December 31, 2017.

Allowance for loan losses increased to $12.7 million as of June 30, 2018 compared to $12.4 million as of December 31, 2017.  The allowance for loan losses to non-performing loans as of June 30, 2018 was 241% compared to 236% as of December 31, 2017.  The allowance for loan losses to total loans as of June 30, 2018 was 0.87% compared to 1.05% as of December 31, 2017.  Non-performing loans to total loans at June 30, 2018 were 0.36% compared to 0.44% at December 31, 2017.  Non-performing assets to total assets were 0.36% at June 30, 2018 compared to 0.38% at December 31, 2017. Loans acquired from Universal in the first quarter of 2018 had an initial credit mark of $4.0 million.

Stockholders' equity was $192.7 million at June 30, 2018, an increase of $42.4 million from December 31, 2017. The increase was primarily due to $42.3 million of capital issued as part of the acquisition of Universal.  Other increases included net income available to common shareholders of $8.2 million.  These increases were partially offset by a decrease in accumulated other comprehensive income of $5.1 million, due to market value changes in the investment portfolio, and common stock cash dividends paid of $3.1 million during the first half of 2018.  The Company's tangible book value per common share as of June 30, 2018 decreased to $19.34 compared to $20.08 as of December 31, 2017 and the tangible common equity ratio decreased to 8.37% as of June 30, 2018 compared to 9.35% as of December 31, 2017.  These declines are primarily a result of the acquisition.  MFSF's and the Bank's risk-based capital ratios remained in excess of "well-capitalized" levels as defined by all regulatory standards as of June 30, 2018.

Income Statement

Net interest income before the provision for loan losses increased $4.5 million for the quarter ended June 30, 2018 compared to the same period in 2017.  The increase in net interest income was a result of an increase of $395.6 million in average interest earning assets, due to the acquisition in the first quarter of 2018 and organic loan growth. An additional benefit was the increase of twenty-seven basis points in net interest margin to 3.56%.  The increase in net interest margin is a result of the yield on interest earning assets increasing forty-four basis points partially offset by an increase on the cost of interest bearing liabilities of twenty-two basis points.

Net interest income before the provision for loan losses increased $6.4 million for the first half of 2018 compared to the same period in 2017.  The increase was a result of an increase of $279.2 million in average interest earning assets due the acquisition in the first quarter of 2018 and organic loan growth. This increase was aided by the net interest margin increasing to 3.46% in the first half of 2018 compared to 3.25% in the first half of 2017, while the tax equivalent net interest margin increased to 3.53% in the first half of 2018 compared to 3.36% in the comparable period in 2017.  The increase in net interest margin is a result of the yield on interest earning assets increasing thirty-six basis points partially offset by an increase on the cost of interest bearing liabilities of twenty basis points.

Provision for loan losses in the second quarter of 2018 was $500,000, a $200,000 increase from last year's comparable period.  Provision for loan losses was calculated based on management's ongoing evaluation of the adequacy of the allowance for loan losses, which is partially attributable to an increasing organic loan portfolio and net charge offs of $308,000, or 0.08% of total average loans on an annualized basis, in the second quarter of 2018 compared to net charge offs of $256,000, or 0.09% of total average loans on an annualized basis, in the second quarter of 2017.   

The provision for loan losses for the first half of 2018 was $950,000 compared to $500,000 during last year's comparable period.  The increase was primarily due to an increasing organic loan portfolio.  Net charge-offs for the first half of 2018 equaled $608,000, or 0.09% of loans on an annualized basis compared to $456,000, or 0.08% in the same period of 2017.

Non-interest income for the second quarter of 2018 was $4.8 million, an increase of $134,000 compared to the second quarter of 2017.  Increases in non-interest income included an increase of $245,000 in service fee income on deposit accounts aided by increases in interchange fee income along with increases due to the acquisition. This increase was partially offset by a $209,000 decrease in net gain on loan sales due to lower mortgage loan production and a decrease of $173,000 in net gain on sale of investments.

Non-interest income for the first half of 2018 was $9.2 million, an increase of $445,000 compared to the first half of 2017.  An increase of $409,000 in service fee income was a result of increasing interchange fees and increases due to the acquisition and an increase of $290,000 in other income was primarily a result of death benefits received in the first quarter of 2018.  These increases were partially offset by a decrease of $344,000 in net gain on sale of loans due to lower mortgage banking activity and a decrease of $148,000 in net gain on sale of investments.

Non-interest expense increased $4.9 million when comparing the second quarter of 2018 with the same period in 2017.  The increase was primarily due to the acquisition and integration of Universal, which included severance, integration and termination expenses.  One-time pretax merger related expenses, primarily in salaries and other expenses, were $1.4 million in the second quarter of 2018 with no similar activity in the same period of 2017.   

Non-interest expense increased $6.5 million when comparing the first half of 2018 with the same period in 2017.  This increase was directly related to the acquisition and integration of Universal into MutualFirst in the first half of 2018.  One-time pretax merger related expenses were approximately $2.0 million in the first half of 2018.

The effective tax rate for the second quarter of 2018 was 12.3% compared to 25.6% in the same quarter of 2017. The effective tax rate for the first six months of 2018 was 12.5% compared to 25.0% for the same period in 2017. The primary reason for the decline was the reduction of the corporate tax rate to 21% and an increase in non-taxable income compared to total income.  The effective tax rate for 2018 has been less than expected primarily due to one-time merger related expenses.

"We are pleased with the first half of 2018. We believe with the acquisition and conversion behind us, it will allow our team the ability to focus on delivering continued momentum into the second half of 2018. We believe our Indiana market presence, along with a strong Indiana economy, will provide us more opportunities to increase shareholder value," Mr. Heeter concluded.  

MutualFirst Financial, Inc. is the parent company of MutualBank, an Indiana-based financial institution since 1889. MutualBank has thirty-nine full-service retail financial centers throughout Indiana. MutualBank has two offices located in Fishers and Crawfordsville, Indiana specializing in wealth management and trust services and a loan origination office in New Buffalo, Michigan. MutualBank also operates a wholly owned subsidiary named Summit Mortgage which operates out of Fort Wayne, Indiana. MutualBank provides a full range of financial services including commercial and business banking, personal banking, wealth management, trust services, investments and internet banking services. The Company's stock is traded on the NASDAQ National Market under the symbol "MFSF". Additional information can be found online at www.bankwithmutual.com.

Statements contained in this release, which are not historical facts, are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.

 









MutualFirst Financial, Inc. Selected Financials



















(Audited)






June 30,

March 31,

December 31,

June 30,




Balance Sheet (Unaudited):

2018

2018

2017

2017





(000)

(000)

(000)

(000)




Assets








Cash and cash equivalents

$            33,005

$         41,069

$        27,341

$25,168




Interest-bearing time deposits

4,482

4,627

1,853

2,046




Investment securities - AFS

362,162

354,145

277,378

256,642




Loans held for sale

3,927

3,686

4,577

8,796




Loans, gross

1,464,735

1,449,426

1,180,145

1,184,353




Allowance for loan losses

(12,729)

(12,537)

(12,387)

(12,426)




Net loans

1,452,006

1,436,889

1,167,758

1,171,927




Premises and equipment, net

25,984

26,208

21,539

20,886




FHLB of Indianapolis stock

12,820

12,820

11,183

11,183




Deferred tax asset, net

11,492

10,665

7,530

10,800




Cash value of life insurance

59,531

59,209

52,707

52,155




Other real estate owned and repossessed assets

1,942

1,753

733

709




Goodwill

22,479

23,869

1,800

1,800




Core deposit and other intangibles

4,134

4,509

127

233




Other assets

17,388

16,656

14,406

13,604




Total assets

$       2,011,352

$     1,996,105

$    1,588,932

$1,575,949












Liabilities and Stockholders' Equity








Deposits

$       1,520,234

$     1,540,452

$    1,202,034

$1,172,985




FHLB advances

263,367

230,546

217,163

235,991




Other borrowings

18,037

18,110

4,232

4,211




Other liabilities

17,026

15,935

15,221

16,436




Stockholders' equity

192,688

191,062

150,282

146,326




Total liabilities and stockholders' equity

$       2,011,352

$     1,996,105

$    1,588,932

$1,575,949





























Three Months

Three Months

Three Months

Three Months


Six Months

Six Months


Ended

Ended

Ended

Ended


Ended

Ended


June 30,

March 31,

December 31,

June 30,


June 30,

June 30,

Income Statement (Unaudited):

2018

2018

2017

2017


2018

2017


(000)

(000)

(000)

(000)


(000)

(000)









Total interest and dividend income

$            20,621

$         16,748

$        15,081

$      14,652


$        37,369

$        28,761

Total interest expense

4,013

3,164

2,888

2,565


7,177

4,961









   Net interest income

16,608

13,584

12,193

12,087


30,192

23,800

Provision for loan losses

500

450

350

300


950

500

Net interest income after provision 








  for loan losses

16,108

13,134

11,843

11,787


29,242

23,300









  Non-interest income








Service fee income

1,959

1,564

1,819

1,714


3,523

3,114

Net realized gain on sales of AFS securities

106

154

255

279


260

408

Commissions

1,368

1,262

1,253

1,318


2,630

2,514

Net gain on sale of loans

736

635

1,162

945


1,371

1,715

Net servicing fees

154

150

85

96


304

197

Increase in cash value of life insurance

322

289

278

288


611

560

Net gain (loss) on sale of other real estate and repossessed assets

11

(68)

(87)

(75)


(57)

(21)

Other income

148

449

83

105


597

307

Total non-interest income

4,804

4,435

4,848

4,670


9,239

8,794









  Non-interest expense








Salaries and employee benefits

8,628

7,289

7,098

6,534


15,917

13,260

Net occupancy expenses

995

897

773

763


1,892

1,572

Equipment expenses

698

556

466

438


1,254

865

Data processing fees

676

593

622

541


1,269

1,095

Advertising and promotion

499

360

318

303


859

614

ATM and debit card expense

573

471

392

410


1,044

828

Deposit insurance

225

257

162

168


482

381

Professional fees

472

782

680

408


1,254

804

Software subscriptions and maintenance

691

594

541

567


1,285

1,136

Other real estate and repossessed assets

44

45

45

33


89

80

Other expenses

2,662

1,133

840

1,052


3,795

1,988

Total non-interest expense

16,163

12,977

11,937

11,217


29,140

22,623









Income before income taxes

4,749

4,592

4,754

5,240


9,341

9,471

Income tax provision

584

585

3,294

1,342


1,169

2,367

Net income available to common shareholders

$              4,165

$           4,007

$          1,460

$        3,898


$          8,172

$          7,104









Pre-tax pre-provision earnings (1)

$              5,249

$           5,042

$          5,104

$        5,540


$        10,291

$          9,971

























Average Balances,  Net Interest Income, Yield Earned and Rates Paid










Three



Three





months ended



months ended





6/30/2018



6/30/2017




Average

Interest

Average

Average

Interest

Average



Outstanding

Earned/

Yield/

Outstanding

Earned/

Yield/



Balance

Paid

Rate

Balance

Paid

Rate



(000)

(000)

(annualized)

(000)

(000)

(annualized)


Interest-earning Assets:








 Interest -bearing deposits

$            25,632

$               63

0.98%

$      24,059

$               37

0.62%


 Mortgage-backed securities:








Available-for-sale

212,150

1,442

2.72

159,559

977

2.45


 Investment securities:








Available-for-sale

153,875

1,251

3.25

93,956

768

3.27


 Loans receivable

1,462,335

17,739

4.85

1,182,502

12,753

4.31


Stock in FHLB of Indianapolis

12,820

126

3.93

11,183

117

4.18


Total interest-earning assets (2)

1,866,812

20,621

4.42

1,471,259

14,652

3.98


Non-interest earning assets, net of allowance 








  for loan losses and unrealized gain/loss

135,591



98,254




     Total assets

$       2,002,403



$  1,569,513




















Interest-Bearing Liabilities:








 Demand and NOW accounts

$          404,823

582

0.58

$    308,047

298

0.39


 Savings deposits

191,637

5

0.01

139,766

4

0.01


 Money market accounts

207,290

251

0.48

166,272

126

0.30


 Certificate accounts

456,284

1,703

1.49

387,138

1,206

1.25


 Total deposits

1,260,034

2,541

0.81

1,001,223

1,634

0.65


 Borrowings

257,066

1,472

2.29

220,004

931

1.69


  Total interest-bearing liabilities

1,517,100

4,013

1.06

1,221,227

2,565

0.84


Non-interest bearing deposit accounts

280,791



187,791




Other liabilities

17,230



15,664




  Total liabilities

1,815,121



1,424,682




Stockholders' equity

187,282



144,831




    Total liabilities and stockholders' equity

$       2,002,403



$  1,569,513












Net interest earning assets

$          349,712



$    250,032












Net interest income


$         16,608



$         12,087











Net interest rate spread (4)



3.36%



3.14%










Net yield on average interest-earning assets (4)



3.56%



3.29%










Net yield on average interest-earning assets, tax equivalent (3)(4)



3.63%



3.39%










Average interest-earning assets to








  average interest-bearing liabilities



123.05%



120.47%




















Six



Six





months ended



months ended





6/30/2018



6/30/2017




Average

Interest

Average

Average

Interest

Average



Outstanding

Earned/

Yield/

Outstanding

Earned/

Yield/



Balance

Paid

Rate

Balance

Paid

Rate



(000)

(000)

(annualized)

(000)

(000)

(annualized)


Interest-earning Assets:








 Interest -bearing deposits

$            23,659

$              130

1.10%

$      22,742

$               62

0.55%


 Mortgage-backed securities:








Available-for-sale

194,051

2,569

2.65

160,364

1,976

2.46


 Investment securities:








Available-for-sale

142,366

2,290

3.22

92,767

1,490

3.21


 Loans receivable

1,371,428

32,063

4.68

1,177,526

25,002

4.25


Stock in FHLB of Indianapolis

12,293

317

5.16

11,150

231

4.14


Total interest-earning assets (2)

1,743,797

37,369

4.29

1,464,549

28,761

3.93


Non-interest earning assets, net of allowance 








  for loan losses and unrealized gain/loss

122,249



97,819




     Total assets

$       1,866,046



$  1,562,368




















Interest-Bearing Liabilities:








 Demand and NOW accounts

$          373,483

1,019

0.55

$    298,956

498

0.33


 Savings deposits

174,578

10

0.01

139,600

7

0.01


 Money market accounts

195,467

471

0.48

170,660

251

0.29


 Certificate accounts

431,089

3,147

1.46

386,147

2,343

1.21


 Total deposits

1,174,617

4,647

0.79

995,363

3,099

0.62


 Borrowings

246,006

2,530

2.06

224,961

1,862

1.66


  Total interest-bearing liabilities

1,420,623

7,177

1.01

1,220,324

4,961

0.81


Non-interest bearing deposit accounts

253,418



183,511




Other liabilities

16,637



15,577




  Total liabilities

1,690,678



1,419,412




Stockholders' equity

175,368



142,956




    Total liabilities and stockholders' equity

$       1,866,046



$  1,562,368












Net interest earning assets

$          323,174



$    244,225












Net interest income


$         30,192



$         23,800











Net interest rate spread (4)



3.28%



3.11%










Net yield on average interest-earning assets (4)



3.46%



3.25%










Net yield on average interest-earning assets, tax equivalent (3)(4)



3.53%



3.36%










Average interest-earning assets to








  average interest-bearing liabilities



122.75%



120.01%



















Three Months

Three Months

Three Months

Three Months


Six Months

Six Months


Ended

Ended

Ended

Ended


Ended

Ended


June 30,

March 31,

December 31,

June 30,


June 30,

June 30,

  Selected Financial Ratios and Other Financial Data (Unaudited):

2018

2018

2017

2017


2018

2017

























Share and per share data:








 Average common shares outstanding:








   Basic

8,577,017

7,810,916

7,389,394

7,344,233


8,196,083

7,338,377

   Diluted

8,731,611

7,965,893

7,526,416

7,487,489


8,350,868

7,484,018

 Per common share:








   Basic earnings

$               0.49

$             0.51

$            0.20

$          0.53


$           1.00

$            0.97

   Diluted earnings 

$               0.48

$             0.50

$            0.19

$          0.52


$           0.98

$            0.95

   Dividends

$               0.18

$             0.18

$            0.18

$          0.16


$           0.36

$            0.32









Dividend payout ratio

37.50%

36.00%

94.74%

30.77%


36.73%

33.68%









Performance Ratios:








   Return on average assets (ratio of net








      income to average total assets)(4)

0.83%

0.93%

0.37%

0.99%


0.88%

0.91%

   Return on average tangible common equity (ratio of net 








      income to average tangible common equity)(4)

10.46%

10.53%

3.89%

10.92%


10.49%

10.09%

   Interest rate spread information:








    Average during the period(4)

3.36%

3.18%

3.11%

3.14%


3.28%

3.11%









    Net interest margin(4)(5)

3.56%

3.35%

3.27%

3.29%


3.46%

3.25%









Efficiency Ratio

75.49%

72.02%

70.05%

66.94%


73.90%

69.41%









    Ratio of average interest-earning








     assets to average interest-bearing








     liabilities

123.05%

122.19%

121.44%

120.47%


122.75%

120.01%









Allowance for loan losses:








       Balance beginning of period

$            12,537

$         12,387

$        12,378

$      12,382


$        12,387

$        12,382

        Net charge-offs (recoveries):








Real Estate:








Commercial

0

53

0

(1)


53

(1)

Commercial construction and development

0

0

0

0


0

0

Consumer closed end first mortgage

56

12

24

80


68

121

Consumer open end and junior liens

20

0

0

8


20

8

Total real estate loans

76

65

24

87


141

128

Other loans:








Auto

(1)

(10)

5

19


(11)

26

Boat/RV

185

131

208

91


316

234

Other

58

30

37

52


88

68

Commercial and industrial

(10)

84

67

7


74

0

Total other

232

235

317

169


467

328









Net charge-offs (recoveries)

308

300

341

256


608

456

Provision for loan losses

500

450

350

300


950

500

Balance end of period

$            12,729

$         12,537

$        12,387

$      12,426


$        12,729

$        12,426









    Net loan charge-offs to average loans (4)

0.08%

0.09%

0.11%

0.09%


0.09%

0.08%


























June 30,

March 31,

December 31,

June 30,





2018

2018

2017

2017












Total shares outstanding

8,587,424

8,574,924

7,389,394

7,344,233




Tangible book value per common share

$              19.34

$           18.97

$          20.08

$        19.65




Tangible common equity to tangible assets

8.37%

8.27%

9.35%

9.17%












 Nonperforming assets (000's)








Non-accrual loans








Real Estate:








Commercial

$              1,753

$           1,415

$          1,107

$        1,199




Commercial construction and development

-

17

-

-




Consumer closed end first mortgage

2,661

3,633

3,409

1,679




Consumer open end and junior liens

251

223

309

238




Total real estate loans

4,665

5,288

4,825

3,116




Other loans:








Auto

31

11

22

4




Boat/RV

290

367

198

342




Other

92

21

16

10




Commercial and industrial

183

208

159

39




Total other

596

607

395

395




Total non-accrual loans

5,261

5,895

5,220

3,511




Accruing loans past due 90 days or more

15

38

31

27




Total nonperforming loans

5,276

5,933

5,251

3,538




    Real estate owned

1,584

1,390

251

326




    Other repossessed assets

358

363

482

383




 Total nonperforming assets

$              7,218

$           7,686

$          5,984

$        4,247












Performing restructured loans (6)

$              1,525

$              913

$          1,389

$        2,071












Asset Quality Ratios:








Non-performing assets to total assets 

0.36%

0.39%

0.38%

0.27%




Non-performing loans to total loans

0.36%

0.41%

0.44%

0.30%




Allowance for loan losses to non-performing loans

241%

211%

236%

351%




Allowance for loan losses to loans receivable

0.87%

0.86%

1.05%

1.05%





















Three Months

Three Months

Three Months

Three Months


Six Months

Six Months


Ended

Ended

Ended

Ended


Ended

Ended


June 30,

March 31,

December 31,

June 30,


June 30,

June 30,

Non-GAAP Measurements (7)

2018

2018

2017

2017


2018

2017









Total stockholders' equity (GAAP)

$          192,688

$       191,062

$      150,282

$    146,326


$      192,688

$      146,326

Less: Intangible assets

26,613

28,378

1,927

2,033


26,613

2,033

Tangible common equity (non-GAAP)

$          166,075

$       162,684

$      148,355

$    144,293


$      166,075

$      144,293









Total assets (GAAP)

$       2,011,352

$     1,996,105

$    1,588,932

$  1,575,949


$   2,011,352

$    1,575,949

Less: Intangible assets

26,613

28,378

1,927

2,033


26,613

2,033

Tangible assets (non-GAAP)

$       1,984,739

$     1,967,727

$    1,587,005

$  1,573,916


$   1,984,739

$    1,573,916









Tangible common equity to tangible assets (non-GAAP)

8.37%

8.27%

9.35%

9.17%


8.37%

9.17%









Book value per common share (GAAP)

$              22.44

$           22.28

$          20.34

$        19.92


$          22.44

$          19.92

Less: Effect of intangible assets

3.10

3.31

0.26

0.27


3.10

0.27

Tangible book value per common share

$              19.34

$           18.97

$          20.08

$        19.65


$          19.34

$          19.65









Return on average stockholders' equity (GAAP)

8.90%

9.81%

3.84%

10.77%


9.32%

9.94%

Add: Effect of intangible assets

1.56%

0.72%

0.05%

0.15%


1.17%

0.15%

Return on average tangible common equity (non-GAAP)

10.46%

10.53%

3.89%

10.92%


10.49%

10.09%









Total tax free interest income (GAAP)








Loans receivable

$                108

$              100

$             104

$           106


$            208

$             213

Investment securities

1,139

944

743

661


2,083

1,308

Total tax free interest income

$              1,247

$           1,044

$             847

$           767


$          2,291

$          1,521

Total tax free interest income, gross (at 21%, or 34% prior to 2018)

$              1,578

$           1,322

$          1,283

$        1,162


$          2,900

$          2,305









Net interest margin, tax equivalent (non-GAAP)








Net interest income (GAAP)

$            16,608

$         13,584

$        12,193

$      12,087


$        30,192

$        23,800

Add: Tax effect tax free interest income (3)

331

278

436

395


609

784

Net interest income (non-GAAP)

16,939

13,862

12,629

12,482


30,801

24,584

Divided by: Average interest-earning assets

1,866,812

1,620,871

1,489,596

1,471,259


1,743,797

1,464,549

Net interest margin, tax equivalent

3.63%

3.42%

3.39%

3.39%


3.53%

3.36%









One-time merger related expenses








Non-tax deductible

$                   -

$              220




$            220


Tax deductible

1,387

385




1,772


Total one-time merger related expenses

$              1,387

$              605




$          1,992


Subtract tax benefit

291

81




372


Net one-time merger related expenses

$              1,096

$              524




$          1,620


Net income (GAAP)

4,165

4,007




8,172


Net income excluding one-time merger expenses (non-GAAP)

$              5,261

$           4,531




$          9,792










Adjusted diluted earnings per share








Net income excluding one-time merger expenses (non-GAAP)

$              5,261

$           4,531




$          9,792


Average diluted shares

8,731,611

7,965,893




8,350,868


Adjusted diluted earnings per share (non-GAAP)

$               0.60

$             0.57




$           1.17










Adjusted return on assets








Net income excluding one-time merger expenses (non-GAAP)

$              5,261

$           4,531




$          9,792


Average assets

2,002,403

1,729,690




1,866,046


Adjusted return on average assets (non-GAAP)

1.05%

1.05%




1.05%










Adjusted return on tangible common equity








Net income excluding one-time merger expenses (non-GAAP)

$              5,261

$           4,531




$          9,792


Average tangible common equity 

159,225

152,276




155,751


Adjusted return on average tangible common equity (non-GAAP)

13.22%

11.90%




12.57%










Ratio Summary:








Return on average equity

8.90%

9.81%

3.84%

10.77%


9.32%

9.94%

Return on average tangible common equity

10.46%

10.53%

3.89%

10.92%


10.49%

10.09%

Return on average assets

0.83%

0.93%

0.37%

0.99%


0.88%

0.91%

Tangible common equity to tangible assets

8.37%

8.27%

9.35%

9.17%


8.37%

9.17%

Net interest margin, tax equivalent

3.63%

3.42%

3.39%

3.39%


3.53%

3.36%









(1)   Pre-tax pre-provision income is calculated by taking net income available to common shareholders and adding income tax provision and provision for loan losses.









(2)   Calculated net of deferred loan fees, loan discounts, loans in process and loss reserves.











(3)   Tax equivalent margin is calculated by taking non-taxable interest and grossing up by 21% applicable tax rate for 2018 and 34% applicable tax rate prior to 2018.









(4)   Ratios for the three and six month periods have been annualized.













(5)   Net interest income divided by average interest earning assets.













(6)   Performing restructured loans are excluded from non-performing ratios.  Restructured loans that are on non-accrual are in the non-accrual loan categories.









(7)   This earnings release and selected financials contain GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding MutualFirst's results of operations or financial position. This table shows non-GAAP financial measures and  the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure.

 

 

Cision View original content:http://www.prnewswire.com/news-releases/mutualfirst-financial-announces-second-quarter-earnings-300685801.html

SOURCE MutualFirst Financial, Inc.

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